 Looking at the income tax formula, we're still focused on line one, that being income, remembering that the first half of the income tax formula is in essence an income statement. A strange one, however, where we have income up top, we've got the equivalent of expenses being deductions to get down to the equivalent of net income, that being taxable income. Our goal to get taxable income as low as possible, and therefore when focused on the income line, we're looking at different things and seeing whether or not it is income, and if it is, is it something that we have to include as taxable income. When we look at the actual tax form, we're focused down here on line five, where we have the pension and annuities. We have the taxable amount and the A and B on the form. We'll take a look at the forms in more detail in a future presentation. When we look at the form given to us to report the income, it'll typically be a 1099R. Now remember, this is similar to what we saw with the IRA side of things, in that the government's going to be trying to incentivize. This is why it's important to kind of understand the rationale for the law, because it'll be easier to memorize what is going on if you can think about what the government is basically trying to do, and that is they're trying to incentivize us to say for retirement the idea being that people are usually good at short-term decision making, but not so good at the long-term decision making, and therefore the IRS is going to try to nudge us through the tax code to get us to behave the way they want us to, basically, because that means they're going to try to get us to give a tax benefit at the point in time. We put the money in to some kind of retirement plan, and then when we take it out, we might have a taxable event at that point in time. Now, they often have the leverage on the employers, remember, because they're the people that are going to be paying the employees, and they have the deduction side of the transaction. So oftentimes, in this situation, it would be a benefit kind of program that could have tax implications for us if we are, say, an employee. So the employer might have a 401k plan or a 403b plan or something like that, and we're going to take our money and put it into that plan, and in so doing, when we put the money in, there's going to be a reduction to the line one on the W-2 form, typically, and therefore we will not be paying taxes on it because it was basically removed from income on the W-2 form when we put the money in. If we don't have a 401k plan with the work, then we might go to the IRA. That's when we go to the IRA, and that's when we can't reduce the income line on the W-2, but rather we take kind of a similar kind of technique with an above the line deduction. So we'll talk more about that in future presentations. Right now, we're focusing in on the distribution, taking the money out of the retirement plan. Now, note that a retirement plan is not something that the government invented, some new tool that you use for investments. The government isn't good at creating investment tools. What the government's going to do is say, we're not going to hit you when you put the money into the investment tools, meaning we're going to give you a tax break if you use your investment tools, the normal tools, putting money into a mutual fund, stocks and bonds, typically, but it's going to go under the umbrella of an IRA. So all they're doing is saying, now I put it under the umbrella of an IRA, using the same investment tools you probably would have invested in anyways, even if there wasn't any kind of incentive to do so, that would be tax incentive. And then they're going to give you this tax benefit when you put the money in. And then when you take the money out, that's when you're going to get hit possibly with the tax and possibly with the penalties and interest. Now, remember, the only reason you would put it under the umbrella of a 401k plan is because of the tax benefit, because you are restricting your money by putting it in there, because that means that you can't take the money out unless you want to get hit with a penalty. So you can only take the money out under certain conditions that typically being once you're in retirement age, so that you're not going to be hit with the penalty. So we would expect older people to typically have more of these form 1099 Rs representing their income, because they're past their working years. We would expect then to have the amounts be taxable, but have a distribution code that would be a normal distribution. So we wouldn't be penalized. If it was taken out early, then you might have a distribution code indicating that you're going to be penalized for taking it out. The distribution codes are here, which you could see on the actual form of the 1099 Rs and the instructions related to it or the back of the form, typically, where you can look it up the IRS website when you look at the form.